Study On Performance Evaluation Development In Small-medium Enterprises Of China

The 21st century is an era of knowledge economy, knowledge-based economy is the core of the development of information technology, production of knowledge and dissemination of knowledge of human resources will replace the material and financial capital to become the most important strategic resources. Value of human resources has become the most important deciding factor in measuring the overall competitiveness of organizations. Facing the globalization, highly integrated, highly competitive era, how to develop and utilize human resources so as to make their own organizations in an invincible position is concerned mostly by all kinds of organizations.The first chapter introduces the research background of this article, content, purpose, meaning and structure of article. The arrival of the era of knowledge economy put forward a number of new requirements on the current human resources management. As competition among employees of enterprises more and more intense, how to evaluate job performance of employees objectively and comprehensively, how to select and develop an open, just and fair performance evaluation system and establish a good atmosphere of competition within the enterprise become a major problem toward enterprises. A lot of enterprises and organizations set up and sound performance appraisal system to solve this problem. This article made a systematic study in order to provide theoretical basis for performance appraisal for the existing methods of diagnosis and re-designed, and also to provide new ideas for the small and medium-sized enterprises performance appraisal system design.Chapter II describes the evolution of Chinese small and medium-sized enterprises (SMEs) and its performance evaluation the status quo. From the early liberation to recent years small and medium enterprises grow rapidly and play an increasingly important role in the economic development of our country, just as follows: they contribute more and more to the economic growth; they become the main channel for expanding employment and play an important role in the construction of a harmonious society; they become the fresh activists of technological innovation; promote economic structural adjustment and optimization; play the growing role in reform and opening up. At the same time, SMEs have following features: the coexistence of a variety of economic sectors; wide distribution in all kinds of industry; Inconsistent level of productivity; the less of the level of the organizational structure of enterprises; fuzzy duty of enterprise managers; enterprises high staff turnover; individual makes a great contribution to enterprises, and a great impact on enterprises, too. With the development of small and medium-sized enterprises, the performance appraisal has experienced from the"organization test"to"performance appraisal"stage of development. Traditional performance appraisal methods are behavior-oriented subjective evaluation method, behavior-oriented objective evaluation methods, results-oriented evaluation methods and so on. Such evaluation methods have advantages and disadvantages of various types. There are three modes of common performance appraisal in small and medium-sized enterprises:"the extensive experience"evaluation mode,"copies mechanically and applies slavishly"evaluation mode and"outside the rationality cerebral"evaluation mode, but they have their own advantages and disadvantages. At present, Small and medium-sized enterprises'problems in the implementation of the performance appraisal process are insufficient understanding of performance management, deficient performance management system, dissatisfaction with performance management and so on. The main reasons for such problems are the following: the Performance management is simply regarded as performance appraisal; performance management is separated with corporate strategy; performance management goal is not clear; performance appraisal target design unscientific and unreasonable; performance management is arbitrary strong; the main body of evaluation is unitary, ossified assessment methods; the purpose of performance evaluation is too simple, application of assessment results is unreasonable and delayed; partial the role distribution, all responsibility is buck passed to the Human Resources Department; lack of communication and feedback between managers and staff ; there is no performance file or the performance file is not true; evaluator' mistakes; the error of performance appraisal caused by other factors: bias error, halo effect of the error, the immediate cause of error, emotional effects of error, suggesting that effects of the error. Recent performance appraisal showing the following trend:"capacity development-oriented type"instead of"check points-type"and"two-way communication-based"instead of"director-centered","performance benchmarks"instead of"abstract base General","great importance to software-based"replace the"hardware center-type"and"multi-faceted evaluation"instead of"longitudinal evaluation."Afterwards also introduced recently proposed the assessment goal, KPI assessment such as"results-oriented"approach and the performance appraisal of"competence-based"assessment of the behavior of the complex combination of performance appraisal model.The trrth chapter is devoted to the current assessment methods commonly used for performance appraisal in small and medium-sized enterprises: Aim Management Act, 360-degree feedback, the key performance indicators (KPI), the Balanced Scorecard (BSC) four types of evaluation methods and their advantages and disadvantages.ChapterⅣwe applied L Company as an example, to analyze its original performance appraisal system; using key performance indicators (KPI) and 360-degree feedback assessment two tools comprehensively, improve the company's evaluation system by the use of composite performance evaluation model.Finally, we chose a typical small and medium-sized company, L Company to analyze problems it encountered during the implementation of performance appraisal process, and pointed out that performance appraisal is a systematic project. In the implementation process, all the following necessary measures and methods should be applied: from the enterprise environment and the objective conditions of production and operation, selection of appropriate evaluation tools and method; the development of a scientific and rational, specific, practical elements of the evaluation target system and standards; performance appraisal should focus on behavior and performance on outputs as much as possible in order to set up and results-oriented appraisal system; selection evaluation were reasonable,emphasis on the systematic evaluation of training; emphasis on performance appraisal process in all aspects of management.